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According to The Sun, the Australian actor will appear alongside Robert Downey Jr. in the big screen outing for the famous fictional detective.
"Russell wants the part, Guy wants Russell. All they've got left to do is dot the i's and cross the t's," said a source.
Ritchie's movie will be based on Sir Arthur Conan Doyle's original novels and a forthcoming comic book series from Lionel Wigram.
It is rumoured that Stardust actor Mark Strong will play the villain in the project, which is expected to begin shooting next month.
The film is scheduled for release in 2010.
More: Russell Crowe, Movies
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